Union Cabinet approves Online Gaming Bill to regulate betting apps

The Union Cabinet has given its approval to the Online Gaming Bill, a landmark piece of legislation designed to regulate betting applications and introduce a stringent legal framework for online gambling. The move signifies a major step by the government to gain greater control over the country's rapidly expanding digital gaming sector, with a primary focus on consumer protection and ethical practices.

The Bill's main objective is to bring all online gaming platforms under a legal structure, thereby allowing the government to monitor and regulate their operations. The proposed law is expected to introduce specific penalties for individuals and platforms found engaging in gambling activities through digital apps, marking a clear shift from the previous, less-defined regulatory environment.

This cabinet decision is part of a broader, sustained effort by the government to tighten its oversight of the online gaming sector. In a major fiscal move, a 28% Goods and Services Tax (GST) was imposed on online gaming since October 2023. Additionally, all winnings from these games are now being taxed at a substantial 30% from the financial year 2024-25, bringing even offshore gaming platforms under the tax net.

Furthermore, the government has already taken significant legal and technical steps to combat illegal activities. New criminal provisions under the Bharatiya Nyaya Sanhita came into force last year, making unauthorized betting punishable with jail terms of up to seven years, along with fines. Government agencies have also been granted the power to block unregistered or illegal websites and apps. Between 2022 and February 2025, over 1,400 such sites were blocked.

Despite these central-level measures, officials have pointed out that states remain the primary authority to act against illegal betting and gambling. This is because "betting and gambling" are subjects listed under the State List of the Constitution, highlighting the dual responsibility of central and state governments in regulating this space.